Fintech Innovations and Their Disruptive Impact on Traditional Banking Models: Evidence from Emerging Economies

This article examines the influence of fintech innovations—such as mobile banking, AI-driven credit scoring, blockchain-based solutions, and decentralized finance (DeFi)—on the evolution of traditional banking models in emerging economies. We show that fintech makes things easier to get to and more competitive, but it also brings new dangers and problems with governance. We do this by using a mixed-methods approach that includes literature synthesis, industry reports, and selected case studies. We look at the Core blockchain ecosystem (including COREDAO VIP token mechanisms) as an example of how tokenized governance and on-chain financial primitives operate with traditional finance (TradFi). We focus on DeFi's programmable financial services. Policy consequences include a need for fair rules, cooperation between the public and private sectors, and increased capability to ensure stability and inclusion. The IMF, the BIS, and modern fintech literature are among of the most prominent sources.